SEW-Eurodrive has commenced construction of a new R200 million head office and factory in Everton, Johannesburg in order to accommodate the company’s growth. The 25 000 sqm building is being constructed on property acquired by the company two years ago. Construction is due to be completed by October 2021 and the company plans to move in to its new premises – which will also act as its South African headquarters – in January 2022.
The factory will be fitted with state-of-the-art, Industry 4.0 compliant technologies over a three to five year period. These will include automated assembly machines and guided vehicles, which the company anticipates will cost at least another R200 million. “In order to remain globally competitive it’s important that this new factory is highly automated,” says managing director, Raymond Obermeyer.
The new hi-tech facility will allow the company to service customers more efficiently and effectively, both in Gauteng and the rest of Africa. The company expects the majority of its growth in the years ahead to come from Africa rather than South Africa. “We expect African markets to account for 50% of our turnover within the next three to four years, given that growth in many countries around the continent is much faster than it is locally,” adds Obermeyer. “Not only do we expect to see opportunities for growth coming from the establishment of the African Free Trade Continental Area (AfCFTA) agreement, but the removal of border restrictions will make it significantly easier for companies like SEW-Eurodrive to do business on the continent.”
The new factory will accommodate a number of the company’s assembly plants around the country in order to develop better efficiencies and contain costs. SEW-Eurodrive’s existing plants in Nelspruit, Durban, Port Elizabeth and Cape Town will continue to operate with a focus on servicing the company’s national footprint of customers, while its current head office and factory will become a large gear box repair centre.
SEW-Eurodrive specialises in gear motors and units, drive solutions, components, and supplementary products and services to the mining, renewable energies and industrial sector, and has been operational in South Africa since 1986. “This new facility has been planned for some years already and we’re delighted that construction has finally kicked off, paving the way for an exciting period in the company’s growth trajectory,” concludes Obermeyer.
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